1. Field of the Invention
The present application generally relates to the pricing and ordering of brand-differentiated products in retailing (in the consumer durables and services categories).
2. Background Description
While the problem is of great importance in practice, we are not aware of publications in the professional literature on systems and methods for establishing optimal prices and order quantities for brand-differentiated products in retailing. A number of investigators have considered consumers' brand substitutability. See, for example, R. E. Bucklin and V. Srinivasan, 1991; A. Ching, T. Erdem, and M. Keane, 2006; R. A. Colombo and D. G. Morrison, 1989; J. J. Inman and R. S. Winer, 1998; and A. Terech, R. E. Bucklin, and D. G. Morrison, 2003.